Bitcoin (BTC) Might Be Gearing up for a Price Correction, Here's Why

Bitcoin [BTC] has been on a bull rally for the last seven days as its price has increased considerably. However, this bullish trend might not last long as a key indicator hinted at a possible price correction soon.

While Bitcoin [BTC] price has seen a remarkable rise of over 6% in the last seven days, a key indicator might be hinting at an upcoming price correction for the coin.

Here’s what’s cooking with Bitcoin.

Bitcoin liquidations rising

CoinMarketCap data revealed that Bitcoin’s price has increased by more than 6% in the last seven days. At press time, BTC was trading at $67,055.86 with a market capitalization of $1.32T.

Meanwhile, Ali, a popular crypto analyst took to Twitter to highlight an interesting update. According to the tweet, if Bitcoin rallies up to $68,838, an amount of $30.33 million will be liquidated.

Usually, an increase in liquidation leads to price corrections. Hence, AMBCrypto decided to take a closer look at BTC’s state to see if it is preparing for a correction or if the road ahead seems clear.

Which way is BTC headed?

Next, AMBCrypto decided to glance at the king coin’s metrics to see what they had to say. According to our analysis of Santiment’s chart, BTC’s MVRV ratio registered an uptick last week, which can be interpreted as a bullish signal.

Moreover, its weighted sentiment also moved into the positive zone. This clearly meant that bullish sentiment around the coin was increasing in the market.

However, the remaining metrics seemed to be painting a bearish picture. For instance, its supply on exchanges registered an uptick, which hinted at an increase in selling pressure.

Furthermore, the king coin’s NVT ratio also registered an uptick. Whenever the metric rises, it means that an asset is overvalued, indicating a higher chance of price correction.